The Karachi Chamber of Commerce and Industry (KCCI) has issued a strong condemnation of the recently enacted Tax Laws (Amendment) Ordinance, 2025, labeling it as undemocratic and detrimental to the confidence of the business community. The chamber is urging the federal government to immediately revoke the ordinance and facilitate a transparent parliamentary debate involving all relevant stakeholders.
In a forceful statement released on Sunday, KCCI President Muhammad Javed Bilwani sharply criticized the ordinance for granting what he described as sweeping powers to the Federal Board of Revenue (FBR), particularly concerning tax recovery procedures. He argued that the ordinance circumvents both Parliament and the Judiciary, thereby undermining the crucial constitutional checks and balances necessary for democratic governance.
Controversial Powers Granted to FBR
The controversial ordinance, which was promulgated by the President of Pakistan just a day prior, introduces amendments to key sections of the Income Tax Ordinance, 2001 (Sections 138 and 140), as well as significant clauses within the Federal Excise Act, 2005. These legislative changes empower the FBR to undertake immediate recovery actions – including freezing bank accounts, attaching properties, and sealing business premises – following a final verdict from the High Court or Supreme Court, crucially without the requirement to issue any further notice to the taxpayer.
Bilwani described this as an unacceptable overreach of authority. He stated that “Allowing tax authorities to forcibly recover dues immediately after a court verdict, without even a basic opportunity for voluntary compliance or appeal, amounts to harassment and a violation of due process.”
Intrusive Monitoring Provisions Criticized
Furthermore, the ordinance includes provisions that allow FBR officials to be stationed within factories and business sites. Their mandate would be to monitor production, inventory levels, and the flow of goods. The KCCI views this particular measure as deeply invasive and alarming for businesses already contending with existing regulatory pressures.
“The deployment of tax officers in business premises is not just intrusive—it’s pure harassment,” the KCCI president asserted. He added that “This ordinance disrespects the Constitution, undermines the judiciary, and sends a damaging signal to the investment community.”
The KCCI stressed that the amendments made to the Federal Excise Act appear to be driven by malicious intent rather than genuine reform objectives. The Chamber reiterated its demand for the government to promptly withdraw the ordinance and engage with affected stakeholders through proper legislative channels.
The KCCI affirmed its steadfast commitment to protecting the interests of businesses and upholding democratic accountability in all aspects of fiscal policymaking.
